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Economic pressure has Canadians trimming restaurant outings: report

Has the restaurant industry bounced back from the pandemic? Richard Alexander, executive vice president of government relations and public affairs at Restaurants Canada, joins BNN Bloomberg to discuss the latest on the restaurant industry.

A new report suggests Canadians are eating out less often and instead opting for takeout, a move that suggests foodies are feeling the economic pinch.

The “2024 Canadian Diner Trends Report” from Toronto-based software firm TouchBistro found 25 per cent of respondents reported eating out at least once a week, down from 38 per cent in 2022, while their average stayed roughly the same.

“It’s likely that higher menu prices are causing overall spending to hold steady, even though Canadians are dining out less,” the report states.

Canadians also appear fonder of takeout as 31 per cent of respondents are eating takeout weekly, up from 25 per cent.

“The past year has seen significant changes in Canadian dining habits,” the report states. “They’re now dining out less than they did a year ago and many are opting to order takeout more frequently instead – a shift in behaviour that suggests that the current economic situation is putting pressure on Canadians’ wallets and causing them to trim their restaurant budgets.”

Tech changes

When it comes to some of the new tech changes seen at restaurants, Canadians would prefer a return back to customs from a few years ago.

The survey found Canadians overwhelmingly prefer a human connection with their dining experience, with 85 per cent of respondents indicating they prefer a paper menu to a QR code or ordering kiosk.

“Our qualitative interviews revealed that they’re concerned with being forced to download an app simply to view a restaurant’s menu, accessibility issues due to screen sizes, and a potentially complicated process to customize orders,” the report stated.

“While there is certainly a place for restaurant tech (especially when it comes to improving efficiency), the data suggests that an easy, seamless, and human-led customer service experience is still the expectation for today’s diners.”

Additionally, Canadians prefer to pay for their meal traditionally, with just nine per cent of respondents preferring a self-checkout payment method, compared to 76 per cent who prefer paying a server at their table.

TouchBistro recommends restaurants respond to the changing trends by changing policies to emphasize the human connection.

“Diners have made it clear they want to interact with restaurants and servers, rather than automated or third-party platforms,” the report states. “This means restaurateurs have a direct line of communication with customers – one that can help them better understand and proactively meet the needs of discerning diners. The operators that rise to the challenge will be the ones with success on the menu in 2024.”